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Economic Structure, Technology Diffusion and Convergence: The Case of the Italian Regions

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  • Matteo Lanzafame

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Abstract

Taking Italy as a case study, this paper investigates the link between economies' structural similarities and convergence. Specifically, treating technology as sector-specific and modelling technological spillovers as a positive function of the degree of similarity between economies' sectoral features, we propose a modified version of the Solow model and derive an "extended" convergence equation. The latter is then estimated by means of Panel Data procedures and data on the Italian regions over the 1970-1995 period. The results bring empirical support to our approach.

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File URL: ftp://ftp.ukc.ac.uk/pub/ejr/RePEc/ukc/ukcedp/0507.pdf
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Bibliographic Info

Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number 0507.

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Date of creation: Oct 2005
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Handle: RePEc:ukc:ukcedp:0507

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Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
Phone: +44 (0)1227 764000
Fax: +44 (0)1227 827850
Web page: http://www.ukc.ac.uk/economics/

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Keywords: Convergence; Technology Diffusion; Regional Growth; Italy;

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  1. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
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  3. Jan Fagerberg, 2000. "Technological Progress, Structural Change and Productivity Growth: A Comparative Study," Working Papers 5, Centre for Technology, Innovation and Culture, University of Oslo.
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  7. Kevin Lee & M. Hashem Pesaran & Ron Smith, 1996. "Growth and Convergence in a Multi-Country Empirical Stochastic Solow Model," Working Papers 9637, Economic Research Forum, revised Dec 1996.
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  19. Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October.
  20. Nelson, Richard R, 1981. "Research on Productivity Growth and Productivity Differences: Dead Ends and New Departures," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 1029-64, September.
  21. Kiviet, Jan F., 1995. "On bias, inconsistency, and efficiency of various estimators in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 68(1), pages 53-78, July.
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  24. R. Paci & F. Pigliaru, 1998. "Growth and sectoral dynamics in the Italian regions," Working Paper CRENoS 199803, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
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Citations

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Cited by:
  1. Aiello, Francesco & Pupo, Valeria, 2012. "Structural funds and the economic divide in Italy," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 403-418.
  2. Francesco AIELLO & Valeria PUPO, 2009. "L'impatto della politica regionale dell'Unione Europea. Uno studio sulle regioni italiane," Rivista Italiana degli Economisti, SIE - Societa' Italiana degli Economisti (I), vol. 14(3), pages 421-454, December.
  3. Aiello Francesco & Pupo Valeria, 2011. "Structural Funds and Economic Divide in Italy," ERSA conference papers ersa10p136, European Regional Science Association.
  4. Paolo Pierani, 2009. "Multilateral comparison of total factor productivity and convergence in Italian agriculture (1951-2002)," Department of Economic Policy, Finance and Development (DEPFID) University of Siena 0209, Department of Economic Policy, Finance and Development (DEPFID), University of Siena.

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